News about Pensions.......

[5corpio]

Warning on celebrity endorsed over 50s plans

Rather than enrich your heirs, these plans – which are advertised by the likes of Michael Parkinson, Gloria Hunniford and Cilla Black – can leave pensioners thousands of pounds out of pocket, says Which?

Free pens, celebrity endorsements and cosy daytime advertising slots shouldn't disguise the fact that "over-50s" plans offer appalling value for most consumers, according to a damning new report from Which? The consumer champion urged the majority of older savers to "stay clear" of these plans – which are designed to leave a lump sum to relatives, primarily to help cover funeral costs. Rather than enrich your heirs, these plans – which are advertised by the likes of Michael Parkinson, Gloria Hunniford and Cilla Black – can leave pensioners thousands of pounds out of pocket. Many policies will payout far less than pensioners have paid in. The Daily Telegraph has previously highlighted what poor value these products are, and has called for the regulators to investigate further.

Which? urged those worried about how relatives would pay funeral costs to look at a conventional cash Isa instead – as this is likely to be far more flexible, and deliver a...Read more here--: Warning on celebrity endorsed over 50s plans - Telegraph

[pompeyfaith]

Re: Warning on celebrity endorsed over 50s plans

My 81 yr old mum in law has one of these with sun life and has been paying into it for years.

ill do some calculations I think and get a projected payout figure from the insurance company.

[garlok]

Re: Warning on celebrity endorsed over 50s plans

We have just done one with Axa-Sun Life. We did the minimum. We are both in our sixties.Based on Mrs G's figures she will have to survive into her late 80's to have paid in the guaranteed payout after two years. With interest rates as they are, we would need a 7% return to get anywhere near in the longer term. My own plan which is slightly less payout for males means I will have to survive into my early 80's to lose out shall we say, an unlikely scenario for me. So to just say put the money into an ISA is far too general a statement to be made in my view. Probably if you are 50 and are looking then it may be not a good deal, but remember that the companies are playing the statistical odds here as in most things insurance and financial.

I can hark back to the "penny" type policies that my parents had with the likes of the "Royal Liver" and "Hearts of Oak" and whilst i know things have changed more than a bit, they were of some value when the inevitable end came.

regards
Garlok

[mgfboy]

Re: Warning on celebrity endorsed over 50s plans

Like any insurance they have their place , but they are not pensions or investments. The advantage is they tend to be free from medical underwriting, but if your in good health you can get better value in the open market if you just want basic life cover. ( saying that you wont get a pen or M&S vouchers)

[5corpio]

Re: News about Pensions.......

Thousands of pension incomes slashed in half as eurozone crisis could see £2,000 a month drawdown payments cut to £900

Read more at AAD Forum Blog Pages: CLICK HERE

[5corpio]

Re: News about Pensions.......

Pension reform blunders slash tax-free lump sums for workers

Workers could end up being short-changed at retirement because of errors in calculating their pension. They also run the risk of paying tax unnecessarily. The problem has come to light in recent weeks after changes in the rules introduced in April. It affects some workers who were members of company pension schemes before April 2006. Bob Bullivant, chief executive of specialist retirement adviser Annuity Direct, says the company has come across several cases of incorrect calculations....Read more here: Pension reform blunders slash tax-free lump sums for workers